PIA deficit stands at Rs 19 billion despite 42 per cent oil relief

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Deficit of the Pakistan International Airlines (PIA) stands at Rs 19 billion despite the 42 per cent drop in the prices of oil products in international market during the last nine months.

From January 2015 to September 2015, revenue of the national airlines decreased by 9 per cent. The total revenue of PIA in the last 9 months was Rs 69 billion.

Plunge in oil prices in the international market resulted in 42 per cent decrease in PIA’s deficit.

The airlines purchased fuel worth Rs 22 billion in the January-September 2015 period.

On January 2, the Senate passed a resolution which nullified presidential ordinance pertaining to privatisation of the corporation.

The government was seeking privatisation of the national airlines. However, the Senate’s move forced the government to seek other options.

On the other hand, on January 13, the government assured International Monetary Fund (IMF) of privatisation of Pakistan Steel Mills (PSM), Pakistan International Airlines (PIA) and State Life Insurance Corporation of Pakistan (SLIC) in the ongoing year.

Pakistan provided a roadmap of privatisation under IMF’s Economic Reforms Programme.

According to the blueprint, steel mills would be privatised by September 2016. While by June, at least 26 per cent shares of the national airlines would also be sold.

Meanwhile, the government is desirous of selling ten per cent to 15 per cent shares of the State Life, Kot Addu Power Company’s 40 per cent and Mari Petroleum Limited’s 18 per cent shares in the ongoing year.

However, PIA employees have strongly opposed the privatisation. The irked employees protested against the proposed privatisation time and again in different offices including Karachi and Peshawar.

2 COMMENTS

  1. Only 19bn Rupees loss ? Is it not understated ? Days ago it was reported in the press that the Airline has suffered 254bn Rupees loss !

  2. even it 19bn,but it's more than enough to heart the masses. Who are the beneficiaries from this deficit and what will be their total number, but unfortunately they highjack the whole nation for personal interest.

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